Südzucker AG : Correction on heavy volume
April 07, 2017 at 03:46 am
By
| Entry price | Target | Stop-loss | Potential |
|---|
|
€20.82 |
€19 |
€22 |
+8.74% |
|---|
After a downgrade by Goldman Sachs and a reduction in the bank's target price from 23 € to 18 € shares in Suedzucker are down substantially this week. In light of the movement's force a near-term turnaround in the share price is unlikely. Rather, a continuation of the downward movement towards 19 € should be priviledged by investors.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● As regards fundamentals, the enterprise value to sales ratio is at 0.78 for the current period. Therefore, the company is undervalued.
● For the past twelve months, EPS forecast has been revised upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
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SÜDZUCKER AG 
